The principles of Behavioural Economics can make communications work harder says Janet Hull, consultant head of marketing at the IPA..

via mediatel.co.uk

I am quite surprised that it is only now that marketing practitioners are actually asking the question whether behavioral economics, communications, and marketing are linked.

Hmmm. Isn't that obvious?

OK. Let's say for the sake of argument that a marketing practitioner is not familiar with "behavioral economics" and what it is.

But surely, one has studied in university basic economics - and what is economics? The study of the allocation of finite resources to optimize utility - however "utility" is measured (e.g., returns, production, revenues, production, happiness... ok, perhaps not the last one...)

Isn't it obvious then that economics has a place in marketing and in communications since everyday, we deal with decisions on how to optimize finite budgets to get the best returns on marketing moneys?

Now put in behavioral: That suggests... people. Individuals. Consumers.

Put the two together: study of people and individuals as consumers or audiences who are faced with options and are motivated to maximize their finite resources - money, time, attention, emotions - to generate the best returns.

I thought discrete choice theory, conjoint analysis, and similar techniques - and Bayesian statistics that allow for hierarchical and individual level analytics - are beginning to be a part of the world of marketing and communications.

Red herring or red hot? C'mon.

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What is behavioral economics?

From Wikipedia:

Behavioral economics is that branch of one,which deals with the study and application of analysis with scientific approach on social,emotional factors for understanding the consumers,investors and the market,and the resources.

The field is primarily concerned with the bounds of rationality (selfishness, self-control) of economic agents. Behavioral models typically integrate insights from psychology with neo-classical economic theory. Behavioral Finance has become the theoretical basis for technical analysis.